Is Saudi Arabia a good place to invest in 2026?

What changed in 2026

Two regulatory shifts happened almost simultaneously at the start of this year.

First, Saudi Arabia's new real estate ownership law took effect in January 2026.

For the first time, individual foreigners can buy residential, commercial and agricultural property in designated zones across the Kingdom.

Previously, non-Saudis were limited to corporate purchases: a foreign national could buy an office for their company but couldn't own a home or investment property in their own name.

Second, on February 1, the Capital Market Authority (CMA) eliminated the Qualified Foreign Investor (QFI) programme entirely.

Before this, non-resident foreigners needed to meet specific criteria, including minimum assets under management of nearly SAR 1.9 billion, just to access the main stock exchange. That barrier is gone. Anyone can now invest directly in the Saudi Exchange (Tadawul).

Together, these two changes mean Saudi Arabia's property and capital markets are both fully accessible to international investors for the first time in the country's history.

The economic fundamentals

Here's where Saudi Arabia stands heading into 2026:

GDP growth: 4.8% in Q3 2025. That's strong by any global comparison.

Sovereign credit ratings: A+ (Stable) from Fitch, S&P, and Moody's equivalent. These ratings haven't shifted in years, which tells you something about policy consistency.

FDI momentum: Foreign direct investment inflows grew 24% year-on-year in 2024, and FDI stock grew 9%.

Competitiveness: Saudi Arabia jumped from 32nd to 17th on the IMD World Competitiveness Ranking between 2021 and 2025. That's one of the fastest climbs any country has made on that index.

Population:Over 70% of Saudis are under 35. The country is targeting a population of 40 million by 2030. A young, growing population drives demand for housing, services, and consumer goods: all of which feed investment returns.

Tax environment: Saudi Arabia has no personal income tax. Residential rental income is not taxed. Corporate tax exists at 20% for foreign-owned companies, but Special Economic Zones offer significant incentives and exemptions.

Where the money is going

The government has committed serious capital to long-term infrastructure and development.

The total investment pipeline exceeds $2 trillion across sectors including energy, urban development, technology, healthcare, and logistics. More than $500 billion is set aside for transport, logistics, and energy infrastructure alone.

Some notable projects:

Mega-projects: NEOM, Qiddiya, Red Sea Global, and Diriyah Gate are sovereign-backed developments with budgets in the hundreds of billions. They are national priorities with direct government financing.

The Shareek Programme: This initiative targets $1.4 trillion in private sector investment by 2030 through partnerships between Saudi national companies and global investors.

Regional headquarters: Saudi Arabia now requires multinational companies doing business with the government to base their regional HQ in the Kingdom.

Around 600 have already complied. Each one brings employees, housing demand, and service industry growth.

Special Economic Zones: These designated areas offer tax breaks, regulatory fast-tracking, and infrastructure support. They're concentrated in areas where the government wants to accelerate development.

What about real estate specifically?

The property market is where a lot of international investor interest is concentrating, and for good reason.

Rental yields in Saudi Arabia averaged 7.34% in Q3 2025 - that’s very strong globally. When you factor in zero local income tax on residential rental earnings, the effective return is even wider.

Price growth in Riyadh hit 10.6% year-on-year in 2025. The structural drivers haven't changed: population growth, the residential headquartering mandate bringing thousands of corporate employees to the city, and massive infrastructure spending.

The Riyadh rent freeze is worth noting. In September 2025, Crown Prince Mohammed bin Salman enacted a five-year freeze on residential and commercial rents across Riyadh, providing a unique environment for investors.

Fractional ownership is now officially recognised by the Real Estate General Authority (REGA) as a legitimate investment category under the new framework. This means you don't need hundreds of thousands of riyals to get started.

What about the stock market?

The Tadawul is the largest stock exchange in the Middle East by market capitalisation. It's no longer just an oil play, listed companies span IT, healthcare, logistics, renewable energy, financial services, and consumer sectors.

With the QFI requirement eliminated, opening a trading account now works much like it does in any developed market. You go through a Saudi Exchange member firm, complete the standard onboarding, and you're in.

For investors who prefer fixed-income exposure, the Saudi debt market: including sukuk (Shariah-compliant certificates), is also fully accessible to foreign investors. These instruments represent partial ownership of tangible assets, with returns linked to asset cash flows rather than interest.

What about the risks?

No market is without risks, it’s worth considering potential of investing in fast-growing economies.

Regulatory evolution: Saudi Arabia is reforming fast, which is mostly a good thing. However, zone designations for property ownership are still being published and new regulations could adjust the framework for foreign investment.

Oil dependency (declining but real): Saudi Arabia's economic diversification is genuine and measurable, but oil revenue still matters. A sustained drop in oil prices could affect spending and sentiment.

Liquidity in real estate: Saudi property is a less liquid market - selling can take longer. This matters more for direct property ownership than for fractional investments.

Currency risk: The Saudi Riyal is pegged to the US dollar, which reduces currency risk for dollar-denominated investors but doesn't eliminate it for those earning in euros, pounds, or other currencies.

Regional geopolitics: The broader Middle East carries geopolitical risk. Saudi Arabia has been relatively stable, but the region is the region.

So, is it worth it?

Saudi Arabia in 2026 is offering something rare: a large, stable economy that is simultaneously opening its markets and committing serious capital to long-term growth.

That means the risk-reward profile is unusually attractive compared to most markets at this stage of development.

This is why foreign capital is increasingly flowing to The Kingdom.

The investors who tend to do well in emerging opportunities aren't the ones who wait for perfect clarity. They're the ones who get in early, stay informed, and size their positions appropriately.

Interested in Saudi real estate investment?

Stake offers access to Saudi funds starting from SAR 500 ($136).

This article is for informational purposes only and does not constitute investment advice. All investments carry risks. Stake is regulated by the CMA as a Fund Distributor in KSA.